If you’re wondering what ERP stands for, it’s “Enterprise Resource Planning”. Follow this link to learn more about OpenPro’s advanced ERP software solutions and how they can help streamline various business operations.

ERP stands for Enterprise Resource Planning

ERP stands for Enterprise Resource Planning. ERP software is comprised of powerful and strategic business process management tools that can be used to manage information within an organization. While every company and organization operating today is different, they all face a common challenge: in order to stay competitive in today’s business environment, they need a dependable and efficient way to store and access information. That’s where ERP systems come into play. ERP systems integrate all facets of an enterprise into one comprehensive information system that can be accessed by individuals across an entire organization.

When you search for “ERP” on the web, the sheer amount of information that comes up can be overwhelming—not to mention a little confusing. Every website seems to have its own definition of ERP, and one ERP implementation can vary widely from the next. These differences, however, underscore the flexibility that can make ERP such a powerful business tool.

To get a deeper understanding of how ERP solutions can transform your business, it helps to get a better sense of what ERP actually is and how it works. Here’s a brief introduction to ERP and why it seems like everyone’s talking about it.

With effective ERP software in place, business owners and leaders can automate and streamline tedious back office tasks, help employees become more productive and successful in their roles, and get real-time visibility into the inner workings of their operations. This resource will provide you with an in-depth overview on the topic of Enterprise Resource Planning.

 

 

Evolution of ERP & Current Trends

The term “ERP” or “Enterprise Resource Planning” was originally coined by industry analyst, The Gartner Group, in the 1990s. It evolved from MRP, a term that was already well-known in business at that time. MRP stands for both Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII). These systems were created back in the 1960s when manufacturing-based companies were looking for ways to improve efficiency and decision-making for production line managers.

In the 1990s, The Gartner Group and other businesses sought to apply MRP systems to other business types, and desired to expand capabilities and processes to other areas within an organization, and thus ERP as we know it today was born. In its early days of existence, ERP focused on organizing data and streamlining processes that related to back-office areas, such as inventory management, fulfillment, purchasing, human resources, accounting, IT, manufacturing, planning and scheduling, and other related areas.

Later, with the introduction and widespread use of the Internet, ERP was expanded further to include other areas of a business, such as customer relationship management (CRM), supplier relationship management (SRM) and supply chain management (SCM), human capital management (HCM), business intelligence and ecommerce.

Today, ERP systems integrate into all areas and functions within an organization, with the primary purpose being to help leaders and managers better understand all moving parts of their operations, identify opportunities, and make more informed decisions that will ultimately have an impact on the future success and viability of their businesses.

Despite the use of the word enterprise in the name, ERP systems are used by businesses of all sizes, large and small. There are two primary types of ERP systems being implemented at organizations today, On-Premises and Cloud-Based. The differences between the two will be explained in another section in this resource.

“The Compass software reports have been especially eyeopening. For example, the low margin sales and cost change reports have helped us stay on top of pricing,” said Braaten. “We’ve increased our margins by adjusting items that weren’t priced correctly. Our soft lines margins have increased by 6 percent companywide.”

“Additionally, in one of our locations we saw an $80,000 increase in margin alone with the implementation of Epicor solutions, all because we have reliable information to see where to make modifications within the business,” said Braaten.

Basic ERP Concepts & Glossary of Terms

There are hundreds of concepts and terms that relate to enterprise resource planning, but here are ten worth understanding now, before you decide whether you want to implement an ERP solution at your business:

What is an ERP System?

An ERP system is made up of applications and tools that help all areas of your business communicate with each other more effectively. ERP systems integrate all facets of an enterprise into one comprehensive information system. Employees in planning and scheduling, for example, have access to the same data as the staff in financial management for their specific needs. All data is available in real-time, which enables employees to make faster, more informed business decisions. With ERP systems, all vital business functions—estimating, production, finance, human resources, marketing, sales, purchasing—share a central source of up-to-the-minute information. Enterprise resource planning systems streamline the collection, storage and use of your organization’s data. The right ERP system can help you collect and store data into one centralized place from areas such as:

Primary Benefits of ERP Systems

Why are more businesses of all sizes implementing ERP systems today? Here are some of the main reasons and benefits why organizations use ERP systems:

  • Provide business leaders with real-time visibility into their operations.
  • Provide business leaders and teams with instant access to their global supply chains.
  • Enable business leaders to identify challenges, uncover opportunities, and make faster decisions that impact different areas of their businesses.
  • Help automate and streamline tedious tasks and redundant processes.
  • Give employees the tools and data they need to be successful.
  • Provide faster and better customer service experience.
  • Provide a single point of information for the organizations.
  • Can often be accessed from anywhere.
  • Help increase productivity among your team.
  • Make it easier for teams to collaborate with each other, and with third-party vendors.
  • Offer powerful reporting and forecasting tools that you can use to make informed decisions about the future of your business.
  • Keep data secure, and help you ensure that your business continues to operate in compliance with global regulatory laws and guidelines.

OpenPro can help your business drives business growth. We provide flexible, industry-specific ERP software that is designed around the needs of our manufacturing, distribution, retail, and service industry customers. More than 20 years of experience with our customers unique business processes and operational requirements is built into every solution—in the cloud, hosted, or on premises. With a deep understanding of your industry, OpenPro solutions improves growth while managing complexity. The result is powerful solutions that free your resources so you can grow your business.

Please contact OpenPro to automate your business and grow faster!